KARACHI: The Pakistan Stock Exchange (PSX) witnessed another strong rally on Tuesday, as the benchmark KSE-100 index climbed over 1,200 points by the close, driven by investor optimism following a landmark ceasefire between Pakistan and India and the IMF’s approval of a $1 billion loan tranche.
At the opening bell, market sentiment was buoyant. The KSE-100 index surged by 2,769 points, or 2.36%, crossing the psychological barrier of 120,000 to reach 120,067.12 by 9:30 am. However, profit-taking soon set in, and by mid-morning (10:40 am), the index had pulled back to 117,686.17, up a modest 388 points.
Despite the fluctuations, the PSX ended the day on a high note. At the close, the KSE-100 stood at 118,575.88—up by 1,278 points, or 1.09%, from the previous session.
The rally followed a wave of positive news. A U.S.-brokered ceasefire brought a sudden halt to the recent military escalation between Pakistan and India, significantly easing regional tensions. In parallel, the International Monetary Fund approved the first review of Pakistan’s Extended Fund Facility (EFF), unlocking $1 billion in funding and signaling confidence in the country’s economic management.
Finance Minister Muhammad Aurangzeb, in an interview with Reuters, said the cross-border conflict was a “short-term escalation” with minimal economic fallout. He confirmed the IMF disbursement would be received Tuesday and that the federal budget for the next fiscal year would be finalized within weeks. Talks with the IMF are scheduled from May 14 to 23.
Adding to the momentum, Pakistan is preparing to launch its first-ever Green Sukuk on May 16. Valued at Rs 30 billion, the Sukuk is part of the Sustainable Investment Sukuk (SI Sukuk) Framework and will be offered through the PSX auction system. Proceeds will be allocated to environmental and social sustainability projects.
Tuesday’s rally followed Monday’s record-breaking session, where the KSE-100 posted an all-time daily gain of 10,123 points to close at 117,297.73—highlighting a renewed sense of investor confidence amid stabilizing conditions.
Market analysts say the combination of geopolitical calm, strong external backing from the IMF, and upcoming green investment initiatives could sustain this bullish momentum in the weeks ahead.